Noble: 3rd-Best Performing Stock in the Offshore Drilling Space


Dec. 18 2017, Updated 10:32 a.m. ET

YTD returns

Noble Corporation (NE) is the third-best-performing stock among its peers, behind Diamond Offshore Drilling (DO) and Rowan Companies (RDC). NE stock has fallen 28% YTD (year-to-date) as of December 12, 2017. Diamond Offshore Drilling and Rowan Companies’ YTD returns are -3.5% and -22.6%, respectively.

Noble Corporation stock has significantly underperformed the broad equity market indexes. The Dow Jones Industrial Average (DJIA-INDEX) has risen 23% YTD as of December 12, 2017. The SPDR S&P 500 ETF (SPY) has risen 18.7% during the same period.

Although Noble Corporation has a negative YTD return, in the last three months, the stock has traded in the green, rising 19.6% in the last three months.

Article continues below advertisement

About Noble

Noble Corporation is an offshore drilling contractor for the oil and gas industry. Through its subsidiaries, it contracts drilling services with a fleet of 28 offshore drilling units—14 drillships and semisubmersibles, and 14 jackups.

Performance in 9M17

In the first nine months of 2017, Noble Corporation had revenue of $907 million, which was 52% lower than $1.9 billion in the same period last year. As of September 30, 2017, its backlog was $3.2 billion, which is almost the same as its backlog at the start of the year. It recorded a net loss from continuing operations of $479 million in the first nine months of 2017, which was significantly lower than $425 million in the same period last year. It generated a positive free cash flow in 2017 and expects that to continue in 2018.

In the next part of this series, we’ll take a look at the stock performance of Transocean (RIG).


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.